TVS Motor Company announced its audited financial results for the year ended March 31, 2026, reporting record revenue and robust electric vehicle sales growth. The company achieved its highest-ever revenue of ₹47,270 crore, registering a growth of 30% compared to ₹36,251 crore in the previous fiscal year. Electric vehicle sales grew by 33% to 3.71 lakh units for the full year, while three-wheeler sales surged by 63% to 2.19 lakh units. Total two and three-wheeler sales reached 58.89 lakh units, a 24% increase over the 47.44 lakh units sold in the preceding year. TVS Motor now has more than 9 lakh EV customers. Following the announcement, the audio recording of the conference call with analysts and fund houses has been made available on the company's website.

Financial Performance FY 2025-26

Operating EBITDA for the year stood at 12.9%, an improvement of 60 basis points over the prior year's 12.3%. The company's Operating PBT grew by 40% to ₹4,975 crore, up from ₹3,563 crore in FY25. The board declared an interim dividend of ₹12 per equity share, involving an aggregate payout of ₹570 crore. Additionally, the company allotted four fully paid bonus Non-Convertible Redeemable Preference Shares (NCRPS) of ₹10 each for every equity share held, amounting to ₹1,900 crore, with a maturity date of September 01, 2026. The following table summarises the key full-year financial metrics:

Sales Performance FY 2025-26

Across vehicle segments, TVS Motor recorded broad-based growth for the full year. Motorcycle sales grew by 24% to 27.13 lakh units, while scooter sales rose by 27% to 24.13 lakh units. Moped sales grew by 7% to 5.44 lakh units. The segment-wise breakdown is presented below:

Q4 FY26 Performance

In the quarter ended March 2026, TVS Motor recorded its highest-ever quarterly revenue of ₹12,808 crore. The operating EBITDA margin for the quarter stood at 13.1%, compared to a normalised EBITDA margin of 12.5% in Q4 FY25, representing a year-on-year improvement of 60 basis points. The normalised operating PBT for the quarter stood at ₹1,375 crore, a 47% increase over the normalised figure of ₹936 crore in the corresponding period of the previous year. Note: The full-year Production Linked Incentive (PLI) benefit of FY 2024-25 was recognised in Q4 FY25; accordingly, Q4 FY25 figures have been normalised to ensure comparability.

Sales Performance Q4 FY26

Total two-wheeler and three-wheeler sales including International Business grew by 28% to 15.60 lakh units in the quarter ended March 2026, against 12.16 lakh units in the corresponding quarter of the previous year. Electric vehicle sales in the quarter increased by 51% to 1.15 lakh units. The segment-wise quarterly sales are detailed below:

Analyst Views

Following the strong quarterly performance, leading brokerages have maintained their positive stance on TVS Motor. CLSA has retained an Outperform rating with a target price of ₹3,900, citing the Q4FY26 EBITDA margin beat at 13.1% and confidence in the company's ability to outperform high-single-digit industry growth through new product launches and strong demand in the scooter and electric two-wheeler segments. Management has indicated that commodity cost headwinds in the first half of FY27 are expected to be partly offset by price hikes, operating leverage, a better product mix, and cost-reduction initiatives.

Nomura has also maintained a Buy rating with a target price of ₹4,105, pointing to a strong domestic and export growth outlook driven by faster expansion in EVs and exports. The brokerage noted that operating leverage and a weaker INR are expected to offset cost pressures, supporting projected growth of 10% and 9% over FY27–28.

TVS Motor has outlined an ambitious roadmap for FY27, projecting strong growth in its electric vehicle (EV), scooter, and super-premium segments, even as the economy segment faces headwinds. The company expects solid single-digit industry growth for FY27 and aims to outpace the broader industry, reinforcing its focus on high-growth verticals and capacity expansion.

Segment Outlook and Market Share Targets

TVS Motor anticipates that its EV and scooter segments will be the primary growth drivers in FY27. The scooter segment, in particular, is expected to see its market share potentially surpassing 40%, reflecting the company's strengthening position in this category. The super-premium segment is also projected to deliver strong performance, while the economy segment is expected to remain under pressure.

Production Expansion Plans

To support its growth ambitions, TVS Motor plans to increase its two-wheeler production capacity by 1.5 million units, targeting approximately 8.3 million units in the next year. Work toward achieving this expanded production capacity is currently underway. On the EV front, the company anticipates monthly EV two-wheeler sales rising from 40,000 to 50,000 units, with Asian markets identified as a key growth area.

Capital Expenditure and Investment Plans

TVS Motor has provided detailed guidance on its capital allocation for FY27. Total investments for FY27 are expected to be lower by INR 500–600 Cr compared to FY26's INR 2,400 Cr. The overall capex for FY27 is estimated at approximately INR 3,500 Cr, with INR 2,000 Cr earmarked for product development and INR 1,000 Cr allocated toward capacity expansion.

Overall, TVS Motor's FY27 strategy centers on leveraging the momentum in EVs and scooters, scaling up production capacity, and disciplined capital deployment to outperform the industry while navigating near-term challenges in the economy segment.